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Yellen Cuts Rates by 100bps as Fed Calls Emergency Meeting, Considering Further 25-50bps Cuts

Aug 5, 2024, 05:09 AM

Secretary Janet Yellen has announced a 100 basis points cut in the Federal Funds Rate. This decision comes in response to the significant downturn in the Japanese stock market, which experienced its worst day in history. The Federal Reserve is expected to call an emergency meeting today to discuss further interest rate cuts, potentially ranging from 25 to 50 basis points. The market turmoil has prompted concerns about a potential financial meltdown, reminiscent of the 2008 crisis. Speculations suggest that the Fed might take additional measures, including printing $10 trillion, to stabilize the market during this election year. The situation was triggered by the reversal of the Japanese cash and carry trade.